Wren told the AJ it would stop underwriting new insurance business as part of a ‘solvent exit’ prompted by the high number of cladding-related claims following the Grenfell tragedy.
Wren’s 63 current architecture practice members include Allford Hall Monaghan Morris, BDP, Howells, Make, Ryder and WilkinsonEyre. Together, they co-own the non-profit organisation and contribute funds to cover claims and operating costs.
Last year the mutual insurance company made the ‘difficult decision’ to issue a supplementary call for extra cash from its members, on top of the annual premiums, to ‘protect the long-term success of the mutual and enable it to continue supporting its members’.
The insurer, which was founded in 1987 ‘amid concerns over cost and availability of insurance’, said that since this call-out for additional monies, a ‘significant number’ of its practices said they planned to leave the Wren.
As a result, its board said its membership was no longer of sufficient size to offer competitive insurance cover.
It is understood all liabilities, including ongoing claims that have been notified and accepted, will be covered during Wren’s exit procedure, though renewal terms will not be offered from 1 July 2026.
A spokesperson confirmed that practices which had paid for insurance for the year will be covered to the end of that period.
Asked whether any monies left over will be paid back to members, Wren said these sums would be held in reserve and the ‘position evaluated at regular intervals going forward’. As of June 2024, the mutual held funds to the value of £29.5 million.
The Grenfell Tower fire in 2017 threw a spotlight on potentially unsafe cladding, leading to massive professional indemnity insurance (PII) claims from architects and payouts from insurers.
Last year, Wren admitted receiving a ‘large number of cladding-related notifications since the tragedy’, primarily relating to works carried out before 2019.
The cost of PII cover had skyrocketed in recent years and some practices were struggling to keep on top of payments. In 2025 Michael Hyde & Associates went into voluntary liquidation, blaming PII costs owed to insurance brokers as the main reason for its financial collapse.
In its 2024 financial report – the last posted at Companies House – Wren noted that it ‘continued to be impacted by the events of the Grenfell Tower disaster’ while posting a surplus of £900,000.
At the time it said a number of cladding claims had ‘the potential to develop into significant claims against the association’. Wren then had 74 members, 11 more than are currently listed on its website.
Explaining the decision to close, Wren chair Chris Bennie, said: ‘The Wren provides a unique range of value-added services to its Members that are not available in the commercial market, so it is with some reluctance that the board decided to exit the market. But we firmly believe that, in the face of a reduction in membership, it is now in the best interests of our members to make a solvent withdrawal.’
Statement from Wren Insurance Association
The Wren Insurance Association Limited (Wren), a mutual insurer of professional indemnity insurance for architects, owned by and for the benefit of its Members, today announced it will conduct a solvent exit. This is a process through which it will cease underwriting new insurance business while remaining solvent and meeting its liabilities including all claims when they fall due.
Since the Grenfell tragedy in 2017, architects across the UK and their professional indemnity insurers have been subject to a high volume of claims in relation to cladding and fire risks. This led to many professional indemnity insurers restricting or withdrawing cover for cladding-related risks.
However, until 2025 Wren continued to provide cover to its members for cladding claims that was not generally available in the open market.
Due to the high number of claims in relation to cladding received by the Wren, primarily in respect of works prior to 2019, it has been necessary to increase calls and in March 2025 make a supplementary call.
Since this announcement a significant number of members have indicated that they will leave the Wren. The Wren board considers that as a result of this, the business lacks the necessary size/scale to offer competitive insurance cover and has taken the difficult decision not to offer renewal terms from 1 July 2026.
Further details on the solvent exit process will be announced as soon as possible and Wren remains committed to providing its members with the highest level of service throughout the solvent exit process.
